EU Prepares Aggressive Countermeasures Against U.S. Tariffs

France's Trade Minister Laurent Saint-Martin has declared that the European Union is ready to employ all available measures during trade negotiations with the United States, particularly in response to tariffs imposed by former U.S. President Donald Trump. This stance underscores the EU's determination to secure a favorable outcome in the ongoing trade disputes.

Saint-Martin, en route to Luxembourg for a trade leaders' meeting, emphasized the need for the EU to leverage its comprehensive toolkit to gain an advantage in the negotiations. He described the potential countermeasures as "extremely aggressive," indicating the EU's resolve to protect its interests. "We are among those who believe that everything is possible, we have a broad toolkit, everything is possible," Saint-Martin stated, highlighting the EU's readiness to use all available options.

Germany's Economy Minister Robert Habeck also weighed in, suggesting that the EU should carefully consider the use of these tools. Saint-Martin, while not specifying which tools might be used, reiterated that all options are on the table. "We do not want to escalate, we want to end this trade war, so we need to negotiate with the United States," he said, adding that the EU must demonstrate its retaliatory capabilities to secure a strong negotiating position.

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The EU's trade ministers have agreed to prioritize negotiations with the United States to remove tariffs. Saint-Martin stressed that the EU should consider all retaliatory measures, including the EU's anti-coercion tool. This mechanism would allow the EU to impose taxes or restrictions on American services or limit American companies' participation in EU public procurement.

While the EU is preparing countermeasures, the primary focus remains on resolving the issue through dialogue rather than retaliation. Saint-Martin noted that the EU should not exclude any options, including the use of the Anti-Coercion Instrument (ACI), to restrict American services from entering the EU market or limit American companies' participation in EU public procurement. However, some member states advocate for a more cautious approach.

The EU is reportedly preparing a list of goods, including American meat, grains, wine, lumber, clothing, chewing gum, dental floss, vacuum cleaners, and toilet paper, among others. Among the most notable products is bourbon whiskey. EU diplomats have indicated that the EU is ready to use all means in its trade defense toolkit to protect the EU single market, producers, and consumers. The EU plans to implement the first round of retaliatory tariffs against the U.S. starting April 15.